Match the following terms to the definitions below:

Terms:

i. Variable cost

ii. Fixed cost

iii. Independent variable

iv. Dependent variable

v. Scatter diagram

vi. High–low method

vii. Regression analysis

viii. Outliers

ix. Account analysis

Definitions:

a. Method used to allocate costs based on review of the general ledger account detail.

b. Total cost remains the same despite changes in volume over a relevant range.

c. One data point that does not fit the pattern of other data points due to error, irregularity, or presence outside the relevant range.

d. Method used to approximate a cost equation so as to estimate the fixed and variable cost components of a mixed cost.

e. Costs depend on both the costs that do not change and the costs that do change with a change in activity.

f. Chosen activity driver that is most closely related to (drives) the mixed costs (e.g., units, miles, feet, hours).

g. Costs per activity level; cost per unit remains constant as activity level increases.

h. Statistical technique that includes all data points to determine the relationships between dependent and independent variables.

i. A plot of all data points collected to determine the relationships between the data points.